\u3000\u3 China Vanke Co.Ltd(000002) 142 Bank Of Ningbo Co.Ltd(002142) )
Key investment points
Highlights of the annual report: 1. Stable and high growth of performance: Bank Of Ningbo Co.Ltd(002142) revenue and PPOP increased by 28.4% and 30.7% respectively year-on-year, and the growth rate was stable at a high level. Among them, the net interest income increased by 17% year-on-year; Handling fees and other non interest income increased by 30% and 71% respectively year-on-year. The annual net profit increased by 29.9% year-on-year, basically matching the growth rate of revenue and profit before provision. 2. 2021 net non interest income + 51.5% (vs 1-3 quarter + 52%): the growth rate of handling charges rebounded sharply; Net other non interest rates remained at a high growth. The rebound in the growth rate of handling fee income is mainly due to the contribution of agency business. Agency fees increased by 33% year-on-year (vs1h21 increased by 13.2% year-on-year), mainly due to the rapid growth of wealth management fee income such as agency wealth management, agency fund and agency insurance. 3. The asset quality remains stable and the safety margin is high. Non performing: the non-performing rate decreased by 1bp month on month, at 0.77%, which is the low level since 2012. The annualized net generation of non-performing assets in a single quarter increased by 34bp to 0.94% month on month, and the economy is under pressure. It is expected that the overall net generation of non-performing assets in the industry will have marginal increasing pressure in Chengdu Bank Of Ningbo Co.Ltd(002142) overall risk control is prudent, and it is expected that the bad products will be disposed of in time. Overdue: the overall overdue rate in 2021 decreased 8bp to a low of 0.76% compared with half a year. The company’s recognition of non-performing assets is very strict. The proportion of overdue non-performing assets is 98.5%, which is less than 100%, which means that overdue assets are basically included in non-performing assets. Provision: the coverage of provision for non-performing assets increased by 10.2 points to 525.5% month on month; The loan allocation ratio was flat at 4.03% month on month. 4. Compared with the same period of last year, the cost income in the fourth quarter decreased by 4 points year-on-year to 42.5%. The management fee increased by 24.9% year-on-year, and the year-on-year growth rate of expenses decreased compared with the margin of 28.8% in the first to third quarters. The company continued to optimize the allocation of expense resources, strengthen the cost reduction and efficiency increase constraint mechanism, and steadily improve the efficiency of personnel capacity and expense allocation. 5. Steady growth of wealth management business; Private banks performed better. At the end of the reporting period, the total personal financial assets reached 656.2 billion yuan, a year-on-year increase of 23%. The number of private bank customers and the growth rate of asset management scale achieved ultra-high growth. The number of private bank customers was 13000, an increase of 70% year-on-year. The total financial assets of customers were 146.4 billion yuan, an increase of 53% year-on-year.
Insufficient annual report: the net interest income decreased by 3.1% month on month: the net interest margin was mainly dragged down by the high base month on month. There are common reasons for the month on month decline of net interest margin at the asset side and liability side: at the time point of annualization in a single quarter, the asset side yield decreased 2bp to 3.79% month on month; The debt side interest payment rate rose 16bp to 2.33% month on month. The slight month on month decline in asset side yield is mainly due to structural reasons, and the proportion of high-yield loans has decreased month on month. The debt side is also dominated by structural factors, and the proportion of relatively low-cost deposits decreased month on month.
Investment advice: Bank Of Ningbo Co.Ltd(002142) is a high-quality bank that we continue to recommend, and the market-oriented mechanism makes its growth most sustainable Bank Of Ningbo Co.Ltd(002142) assets are of excellent quality and have undergone periodic tests. With high profitability and sustained growth, the company has flexible market mechanism and excellent management. It is a high-quality bank representative of scarcity. Company 2022e, 2023epb1 69X/1.47X； PE11. 26x / 9.57x (City Commercial Bank pb0.76x / 0.67x; pe6.37x / 5.64x) Bank Of Ningbo Co.Ltd(002142) deepen the construction of diversified profit center. Wealth management is a new runway. In the future, the company can continue to maintain rapid growth, and we maintain key recommendations.
Note: according to the 21st Annual Report, we fine tune the profit forecast and predict that the net profit attributable to the parent company from 2022 to 2023 will be 23.5 billion and 27.5 billion (the previous values were 23.4 billion and 27.6 billion).
Risk tip: the economic downturn exceeded expectations and the company’s operation was less than expected.
